tv Real Money With Ali Velshi Al Jazeera August 25, 2014 1:30am-2:01am EDT
>> hundreds of days in detention. >> al jazeera rejects all the charges and demands immediate release. >> thousands calling for their freedom. >> it's a clear violation of their human rights. >> we have strongly urged the government to release those journalists. >> journalism is not a crime. aljazeera.com. don't look now, here comes britain's economy. the uk's economy is powering forward and could take over as europe's strongest economy. we'll look at what britain is doing right. also, reading, writing and red ink, a step that a school system is taking to open the school for the kids. living in a box - going inside what could be the apartments of the future to see how they stack up - literally - i'm ali velshi, and this is "real money".
this is "real money," you are the most important part of the show. tell me what's on your mind by: europe's economies are stumbling. we care, because the european union is the united states biggest trading partner. the u.s. exported, sold, $262 billion worth of goods and services to the e.u. bloc. we imported more - $385 billion in goods and services. any economic stall in europe gets felt by americans. there is a bright spot. and that is the u.k. the british economy is growing faster than its continental neighbours. germany, the biggest economy in europe, has been the engine of growth. many wonder if the u.k. will one day overshadow it. >> reporter: it's gone from lagered to leader.
the u.k.'s economy is growing has it european neighbours stall. the g.d.p. was 3.2% higher in the second quarter compared to a year ago. that was the best performance in more than six years. unemployment rates have dropped to 6.4% from a high of 8.4%. but the u.k.'s recovering has been slower than germany and trans. the financial crisis took a heavy toll, shringing by 7%. >> we didn't see growth until two years ago. since then the u.k. grew rapidly. it's beyond germany in terms of growth since the start of the financial crisis. >> among the factors credited for fuelling growth in the u.k. are cheap money, a booming housing market and a weaker currency that helps u.k. exports stay competitive. growth is weak, and a slowdown poses a threat to the u.k.,
since it exports goods to the eurozone. growth is expected to continue. >> the u.k. can do well obvious the next few years. germany is bigger in terms of economic sense. it's 10-20% larger in terms of sizes and economy versus the u.k. but that is going to change over the next 20 years. >> that's because of demographic shift. the uk's population is grow, thanks to a rapid birth rate and is expected to eclipse germany's population in the future. now, i'm always curious about why some big industrialized economies grow faster that others. i wonder what lessons we in america can learn. i explored that with jay bryson, a global economist. i arrived what is going on in the u.k. that is not happening in germany. >> you have positive population growth in the u.k. you don't in germany. germany topped out and is heading down.
you look at the united states. we continue to have positive population growth. the u.k., relative to germany, is a flexible economy. a lot of people speak english, and with the economy booming it's attracting more immigration. they are lessons that we don't really have to learn too much about. we speak english, and have a growing population. those are things that are good for the economy in the long run. >> if you want to use the example of where population growth is a real problem, you go to japan, where they don't have population growth. that's a conundrum for them problems. >> if democratic projections come to pass, the japanese economy, in terms of population goes down about 30% over the next few decades. they have long-term changes as it relates to the growth and size of their economy. >> here in the united states we are worried about wage growth. it's been beating inflation by a little bit. in the united states you have -
in the u.k. you have a situation where wage growth in some cases has not kept pace with the cost of living. is that a danger? >> it is. what has happened in the u.k. over the last few years, two years specifically, is consumer spending growth has been strong. what has happened is they've been able to finance that by bringing their savings rates down. it spiked up after the global financial crisis and has a ways to come down. if wages don't start growing there over time, and inflation is positive, you know, bringing down the savings rate is not sustainable. the labour market is tightening. we expect to see positive wam growth, but that's a -- wage growth, but that's a forecast that hasn't happened yet. when europe came together as the eurozone. europe has a special relationship, they have the trade and business without the currencies, without the
euro. david cameron offered to apiece hardliners, a referendum about getting out of europe as a whole. do you think that's likely? what impact would that have on britain's economy. >> it would be interesting to see what happens. there's an election next year. if the conservatives return to power, david cameron pledged to bring about this referendum, probably by 2017 for so. it will depend on politics in the next three years. if they get out of the e.u., it will raise a lot of question marks about businesses, what does this mean. now we have freed trade in goods and movement of people. will that continue. if we get out. will it be rescinded. uncertainty for business is never a good thing. i would thing if the referendum comes to pass, you'll see uncertainty in britain, and that slowdown.
>> we'll watch it closely. thank you for joining us. jay bryson, a global economist. next, the big city school district that can barely afford to open this fall. we look at the financial trouble >> al jazeera america presents... labor day marathons >> our government is allowing an invasion >> our most acclaimed series.... back to back to back... toughest place... >> i call that a lot of hard work for next to nothing >> the system... >> a justice system run by human beings can run off the rails >> and borderland... >> a lot aof people haven't got a clue what goes on near the border >> al jazeera america presents labor day marathons >> this is not over...
weekdays at 5pm et / 2pm pt only on al jazeera america this show looks hard at philadelphia's shrinking tax base, and how it effects the city. the school system is an example. the city is strapped for cash the city looked at delaying classes. we are talking about the 8th largest school system. fortunately the superintendent decided to start on september 8th. there'll be 32 million in cuts to avoid lay-offs. buses will no longer be provided to high school students within two miles of the school. buildings will not be filled and unfilled school safety officer positions will be vacant, because of an $81 billion shortfall. philly is hoping a $2 cigarette
tax may fill the rest of the budget hole. it comes on top of 5,000 job losses and the closing of 30 schools. damon williams is the politics and pub lisy reporter at the "tribune", he says fixing the priority. >> education comes first, and it has long-range implications for the city's economy, that the educators and politicians must focus on education before job creation, and before even safety. education has to be the priority. the good news, as you mentioned, is that the schools are opening the the bad news is once again it's another round of cuts, and the students of philadelphia will not be educated to the proper means that politicians and educators... >> i love filly, as you know, i am on may way there tonight. i live there part of the time. i want to always be positive.
i want to say great things. i recited the litany of stuff in the education system before i came to you. it's hard to wonder how this gets better. tell me in your view, how bad this is? >> i talked to people, to educators in the public sector and the charter school arena. they say it's the worst it's been in the last 40 years. the quality of education, and the dearth of services are unseen by many veteran politicians and educators, they go back to the integration movements to find a worse time than what you find now in philadelphia. that's the way that things are here. it's a bleak outlook. politicians are grasping at straws, hoping that the $2 per pack cigarette tax comes through in time. we heard every week the general assembly hasn't passed, $1.3 million is taking away from
the fund that would come from the cigarette tax. the more time they waste... >> $2 tax will it stop people from smoking. will it help enough? >> the politicians say that can bring in an extra $90 million in annual funding to the school district, covering the $81 million budget deficit. make no mistake, philadelphia and the state needs to come up with a better per pupil formula. >> let me arriving you this: will this push people into charter schools. i don't have anything against charter schools, some do a fantastic job, but the danger is it takes the light from the problems in public schools and sometimes. >> people belief that, but what is a myth. the funding for the charter school comes out of the budget for the philadelphia school district. so if the philadelphia school district will have shrinking fund, that's - the charter
schools will have shrinking funds. they have the edge on public schools because they are about safety, funding comes out of the pockets of the school district of philadelphia. a pleasure to talk to you, tonight. >> thank you for having me. >> david williams, a reporter with the "philadelphia tribunal un." we have been following the lives of three families as part of or series "america's middle class - rebuilding the dream", it's good and bad news for the williams family. stephanie williams landed a higher paying job coaching teachers and prisons pals in the chicago district. to get the job she had to agree to move the family of six from the suburb to chicago. the williams house is under water is the problem. meaning it's worth less.
the williams family found a duplex apartment in chicago, that is large are, newer and in better shape than their hour, they are looking forward to the transition of being home owners to representers. coming up. apartments made from shipping containers - next on "real money". >> al jazeera america presents >> i've been waiting for this... i'm so nervous right now. i'm really scared. >> 15 stories one incredible journey edge of eighteen premiers september 7th only on al jazeera america @j
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millions of young people in this country are anxious to get out of their parents homes and live on their home. low wages and high rents keep many with mum and dad. some developers and architects are turning to shipping containers. a trend popular in europe is spreading. a new shipping container apart. building is being built near the white house. >> reporter: take a short drive to washington, and you come across an apartment building that doesn't fit in yet. it's cua, built of used shipping containers. project architect kelly davis and travis price.
>> a lot of people like us were stuck for rent. the goal was to have their own bathroom, had place to get away but a living, kitchen, common area to hang out in. >> the three-story building has a one sixth bedroom apartment. when complete. 18 people live, one person per container and bathroom. >> if i build this with brick, i would be in the 200s per scare foot. i'm in the hundreds. that's a game changer. it can offset. >> containers, second hand, can cost as little as $2,000. add to that a glut of inventory. more than 700,000 are empty. >> it's cheaper to build a new one in china than to send it back empty. >> this is the yard where the developers brought the containers. they are tacked in threes. on ships they are sixes and
higher, making them attractive for develops. >> shipping containers have been used for residential construction around the world. this is in australia. in england you can barely tell this 4-storey building is made of containers. another in amsterdam. shipping container living is gaining momentum from homes in mexico to brooklyn and new york, and upscale communities are welcoming them. this luxury beach home is constructed from shipping containers in the hamptons. >> i believe it's a billion dollar market. they are everywhere. everyone uses them for, you name it, houses, garages for the sheds. >> are the equipment metal boxes suitable for long-term living. each bedroom is 8 feet wide and 8 feet long with large window to give the small face a bigger
feel it fits a twin size beds, rooms are represented with size appropriate furniture. >> i'll have a bed, a desk, a large closet that is mirrored and that will be solid glass with a great view. >> the center of each apartment with a shared kitchen and common area, will have walls and glass that flood with light, designed to lower electricity costs. the notice will have modern finishes. after the building is insulated little of the steel will be visible. there'll be reminders that this is a steal box. take the wooden floors. >> we'll sand it and refinish it. this is the tongue, the sealed tongue of the container but on to the 18 wheeler for trafficking. we'll paint each the colour of the container. before anyone can live, d.c. building inspectors must
certify them suitable. most of these have been rented to the student at the catholic university. meanwhile there are more inquiries around the country anxious to bring this type of living to a city near you. one we were, abebu architecture, is designing a hotel. if you don't live in them, you may vacation in one. don't expect everyone to celebrate the arrival of shipping containers posing as apartments. elliott issen berg is from the national association of home builders and an economist and bloggist at craft and laugh. >> they are a little small, but with creative efforts and a murphy bed everything works. >> what is the downside? i expected to see things that look like the shipping containers i see out by the port of newark. these look architecturally interesting.
i see why there's appeal. >> there is appeal. they can go up quickly. a cool part is you can bolt on more parts. let's say you are a husband and wife and you have no kids and you get tripmentsmen, you can bias you need it. them? >> as much as you try to make them look nice, they are not going to last as well, they'll start to rust. neighbours will not like them. that will lead to people revoling, neighbour highlights reveldting saying we are not going to allow them, we'll forbid them like they do lars. why are these permitted when you can't do that. if you look at faster, more efficient ways to create housing, there are other ways of creating housing. we don't allow mobile homes into
exception. >> at one level they haven't been prohibited. they are so new the laws have not caught up. i hope they don't catch up. it's a great idea. it some go south, and one neighbourhood has a bad experience, and you can blog or google new home and, you know, this type of construction materials, suddenly people will go woe, let's pass quick ordinances. that will be bad. >> we know we have a problem with household formation, as the kids don't get good paying drugs or higher unemployment rate, they choose to stay at home, that means all the things involved with owning a home are not done, affecting the economy. however, if you move into a container, you are not doing the things that you would do if you move into a home. is it a good step towards formation. >> it's a step in the right
direction. it's not a solution. let's say we build 10,000 unit a year like this. this is a partial solution. there's multi family instruction, in some cases smallest houses. this is a solution. it should be allowed to continue. flourishes. >> is there good costs savings, is it it something people should take seriously. >> anything built off site will save 5-10% because of efficiencies and savings. these are smaller, but they cost 60, $70, $80 bucks a foot. home. >> there's a speed to the construction. with where we are in the economy, speed to construction is not as apparent as in 2004 and 2005 when home builders enough. >> and interest rates were story. >> good to talk you, thank you
for joining us. a senior economist at the builders. this week marked an important milestone at al jazeera america. it was our one year anniversary, from the beginning our mission has been to provide you with real news to cover the most important stories in a way never done, with facts, perspective and objectivesy. we think we are on our way to accomplishing our goal. like a start up we have run into changes, but we think we have come a long way in a short time and plan to get better. here is a look at what we have done in the past year. >> the middle class is in crisis. access to care and primary conditions, these are the big considerations that people out here are confronted with. . >> they attacked us 25 feet from where people live. >> detroit across the river, it's windsor canada. >> the pager jet
carried 225 passengers and crew members. >> which do you like, what do you use? >> circular is how we can reuse the system. >> farmers are switching to robots to milk cows, not because they want a better lifestyle, workers. >> let's ask about the nobel prize, when did you photocopied ou and has it sunk in? >> i found out this morning as i got out of the shower. >> i remember parking that car, and i remember pumping in with the card for my first time and it felt good. >> in times where we are not growing as fast as we'd like to down. >> look at the top 1% of americans, after tax income jumped more than 200%. >> high frequency trading so fast it's not measured in seconds, but milliseconds. >> i'm bald and you are rich.
>> you are the second met. >> i'm going to talk about the food that black south africansate in the old days before mandela and eat today. >> why did americans think it was okay to support the apartheid government. >> the antiapartheidmovement was supported by the economy. >> we are not talking about movies, we are talking about the book "i got schooled." challenges that the inner city has are different, than the ones schools have. >> young people are racking up $11,000 more in debt than kids from lower income families. >> the ability to create is a powerful thing that can happen. >> you tried to get through my everything. >> until you and i watch it signed by the president. we are not believing it. me? >> absolutely not. >> three-quarters of the cost at
the pump is related to the price of oil. here. >> what is the problem, what will to do to us? >> i'm going without basic needs being met. better. >> everyone can do something. >> they are stacking things on shifts. making them attractive for apartment buildings. >> you think the next head of nissan should be japanese. >> how do you feel about this. how long will you do it? day. if you like what we have done so par, wait until you see next year's reel. that's our show for today. i'm ali velshi, thank you for joining us. >> now available, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says...